Asian markets mostly rise after RBA sparks hopes of interest-rate cuts – MarketWatch

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Asian markets mostly rise after RBA sparks hopes of interest-rate cuts - MarketWatch

Asian shares were mostly higher Thursday on news that the Reserve Bank of Australia may cut interest rates, driving hopes that other central banks could come to the same conclusion. Markets in China, Hong Kong and Taiwan were closed for Lunar New Year.

Philip Lowe, the governor of Australia’s central bank, said in a speech on Wednesday that lower interest rates “might be appropriate at some point” if the country’s unemployment rate keeps rising and inflation targets aren’t achieved.

The central bank kept its official interest rate at a record-low 1.5% earlier this week. But it downgraded its 2019 growth forecast for Australia to around 3% from 3.5%.

“In adopting a more evenly balanced stance, the RBA has opened the door for a rate cut if increased global risks and the weaker housing market forces more downgrades in its sanguine growth or inflation outlook,” DBS Group Research strategists Philip Wee and Duncan Tan said in a commentary.

Australia’s S&P ASX 200

XJO, +1.10%

  rebounded 1.1% on Thursday.

When borrowing is made less expensive, the increase in spending by businesses and consumers could give the economy boost. Central banks in the Philippines, India and the U.K will meet later today but they are expected to leave rates unchanged.

Japan’s Nikkei 225

NIK, -0.59%

  dropped 0.7% on concerns over U.S.-China relations. U.S. Treasury Secretary Stephen Mnuchin and trade representative Robert Lighthizer will lead a delegation to Beijing next week for the next round of trade talks, but the issues at hand are complex.

These include contentious issues like Beijing’s technology policy and trade practices, where progress has been limited so far.

Mnuchin also said that there were no plans for President Donald Trump to meet Chinese leader Xi Jinping. “If there are remaining issues that we can’t get closed, I think President Trump expects that he’s going to sit down with President Xi and address those issues,” he said.

In other trading, New Zealand’s NZX index

NZ50GR, +0.66%

  advanced 0.8% and South Korea’s Kospi

SEU, +0.00%

  rose 0.3 percent to 2,209.76. Stocks rose in Singapore

STI, +0.50%

  but fell in Indonesia

JAKIDX, +1.02%

 .

Among individual stocks, SoftBank Group

9984, +17.73%

  soared after CEO Masayoshi Son announced a huge stock buyback — about $5.46 billion worth over the next 11 months. Fast Retailing

9983, -2.70%

  and Yahoo Japan

4689, -4.89%

  fell. In Korea, Samsung

005930, -0.32%

  and SK Hynix

000660, +1.05%

  advanced. Australian banks continued their roller-coaster week, with the Big Four — ANZ Banking

ANZ, +1.70%

 , Westpac

WBC, +1.93%

 , Commonwealth Bank

CBA, +2.01%

  and National Bank of Australia

NAB, +1.26%

  — rising more than 1% each

On Wall Street, videogame companies Electronic Arts

EA, -13.31%

 , whose titles include “The Sims”, and Take-Two Interactive

TTWO, -13.76%

 , maker of the “Grand Theft Auto” series, reported weaker-than-expected earnings on Wednesday. They also posted disappointing forecasts because of tougher competition. Communication sector stocks tumbled, snapping the market’s five-day winning streak, but strong earnings by other companies cushioned the blow. The broad S&P index

SPX, -0.22%

  lost 0.2% to 2,731.61. The Dow Jones Industrial Average

DJIA, -0.08%

  fell 0.1% to 25,390.30 and the Nasdaq composite

COMP, -0.36%

  dropped 0.4% to 7,375.28.

U.S. crude

CLH9, -0.17%

  lost 10 cents to $53.91 per barrel in electronic trading on the New York Mercantile Exchange. It gained 35 cents to settle at $54.01 per barrel in New York. Brent crude

LCOJ9, -0.18%

 , used to price international oils, gave up 18 cents to $62.51 per barrel. It added 71 cents to close at $62.69 per barrel in London.

The dollar

USDJPY, -0.09%

  eased to 109.87 yen from 109.99 yen late Wednesday.

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